The dollar fell from a three-week high versus the euro after data showed the U.S. unemployment rate was higher than forecast in December, fueling bets the Federal Reserve won’t end its stimulus efforts any time soon.

So much for Federal Reserve transparency, it is very clear after the release of the Fed minutes that the Federal Reserve either misled the market after the last Fed meeting or there is something more sinister going on.

U.S. stocks retreated for a fourth day, while Treasuries gained, as Senate Majority Leader Harry Reid said nothing is happening in budget talks and the nation appears to be headed toward the fiscal cliff.

The Federal Reserve set an unemployment target of 6.5% and pledged to continue buying longer-term Treasuries to "maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative."